ESMA and EBA report on functioning of CRR with related obligations under EMIR

Under Article 515 of the CRR, the EBA and ESMA were required to report jointly with regard to institutions operating as a CCP, in order to avoid duplication of requirements for derivative transactions and thereby avoid increased regulatory risk and increased costs for monitoring by competent authorities.

The report calls for the requirements for credit, market and counterparty risk in the CRR to be clarified in order to ensure that only risks not already covered by specific financial resources for activities not related to clearing are to be covered by CRR requirements. The report recommends that the exclusion be extended to activities covered by interoperability arrangements.

The EBA and ESMA recommend that the EU Commission clarify the overlap of the capital requirements for CCPs holding a banking licence and clarify the wording of Article 305 of the CRR, which regulates the treatment of clients' exposures to clearing members.